Don’t Audit The Fed!

Senator Rand Paul and Congressman Thomas Massie have coordinated their efforts to audit the Federal Reserve. The Senate passed the bill on January 12, 2017.[1] Congressman Massie has reintroduced a similar bill, H.R. 24, The Federal Reserve Transparency Act of 2017.[2] It is expected to pass. President Trump will likely have an opportunity to sign a bill.

Don’t do it! I know this is heresy. I have a lot of respect for Paul and Massie. But let’s pause this movement and take a quiz. Please choose one answer.Q: What is likely to be found from an audit of the Federal Reserve?

The U.S. has either sold or promised, to other countries, all of its gold reserves.

The Fed has off-the-books money creation which doubles their reported data.

The Fed has used its undisclosed activities to bailout foreign banks and prop up foreign currencies.

The Fed has only minor, non-material accounting errors. Essentially, everything is OK.

Do Senator Paul and Congressman Massie really think an audit will reveal information which would dethrone the dollar as the reserve currency?

Let’s be clear. The U.S. government will start a nuclear war to protect the dollar as the reserve currency. Without the reserve currency status, the dollar will move toward its intrinsic value.

There is absolutely NO WAY an audit will reveal anything which will damage the value or status of the dollar. It didn’t end well for Muammar al-Gaddafi, when he “planned to create a gold-backed African currency to compete with the dollar and euro.”[3]

So you don’t miss this, the agency which would do this audit is the Government Accountability Office (GAO). How does the government auditing the government give us confidence? But I don’t care if Ernst & Young did the audit! Any private accountant who gave a despairing report would be a dead-accountant-walking. Any true audit of the Fed is a national security issue.

Technically, the Federal Reserve is not supposed to be the government. The 1913 idea, the year the Fed was created, presented the Fed as a separate entity. It would be correct to say, “The Federal Reserve is the creation of a banking cartel whose primary objective is to protect the cartel’s financial interests.”[4]

In 2014, Alan Greenspan let the cat out-of-the-bag. He said, “I never said the Fed was independent.”[5] What??

Apparently, once a Fed chairman retires, we hear the truth. On December 4, 2015, in an interview, former Fed Chairman Ben Bernanke was asked how he responds to all the times he was wrong about his economic forecasts.[6] He said, “Well, it was partly the result of the fact that I was representing the administration. And you don’t really want to go out and say, ‘Run for the hills,’ right?”[7]

The Federal Reserve resists the idea of an audit. They say they feel threatened.[8] In reality, this is all a show. “Wink; wink.”

The Fed knows they are the bartender serving the drinks. Bellied-up to the bar are Congressmen and women who are addicted to spending. The Fed winks at their spending and pours more shots. Congress can’t cut off the Fed’s printing press; without major convulsions.[9]

President Trump can’t spend $1 trillion on the infrastructure, rebuild the military, give the biggest tax-cut since the Reagan years, spend more on the War on Terror and pre-fund the wall, without the Fed printing more money. President Trump may sign the Audit the Fed bill, but the audit is going to empower the Fed, not hurt the Fed. In the end, the Fed and the dollar will be validated.

Should we audit the Fed? It’s too late to stop the train. Let’s do it. It could be a smoke screen for a better idea. A better idea is really, really simple. We can create a competitive currency by passing a law which values U.S. Mint precious metals at the current market value.

U.S. Mint gold and silver coins are already considered legal tender. The one ounce Gold Eagle coin has a face value of $50. The one ounce Silver Eagle coin has a face value of $1. The U.S. Government considers these coins money, at these values. If we implemented a law which valued these coins at the current market value—and maintained the tax-free nature of this money—then we have a hard currency. How fast could this get done? Other than the tremendous opposition it would create, this is an easy step. It should be a short bill.

If the dollar had competition, the Federal Reserve would be forced to clean-up its act. Without an audit, the Fed would immediately change. Since there is NO WAY an audit is going to change the Fed, a competitive currency will accomplish the desired changes, without embarrassing the banksters.

This isn’t my idea, really. In Ron Paul’s last chapter, of End The Fed, he presents competitive currencies as the best hope for ending the Federal Reserve. If you don’t have the book, I suggest you get it. Paul’s End The Fed is must reading.

“Dollar” Bill is a real guy, with real knowledge on our nation’s financial calamity, and real solutions for what must be done to dig ourselves out of the hole we are in. Due to his career, Bill must remain “disguised” to protect his position. “Bill” loves America, sees the impending cliff we are all headed towards, and hopes that by sharing his inside knowledge of the failed monetary policy in our nation, that a fiscal “nuclear” event can be averted.